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byline: Kate Andrews

NoVA CEO to be nominated for U.S. Navy secretary

Carlos Del Toro, president and CEO of Alexandria-based defense contractor SBG Technology Solutions, will be nominated to become secretary of the U.S. Navy, President Joe Biden announced Friday.

If confirmed by the U.S. Senate, Del Toro will be the second Latino man to serve as head of the U.S. Department of the Navy, after Edward Hidalgo held the position in the Carter administration. He has led SBG Technology Solutions for 17 years and served in the Navy for 22 years. Del Toro was senior executive assistant to the director for program analysis and evaluation in the Department of Defense secretary’s office as a civilian, and he concluded his military career as the first commanding officer of the guided missile destroyer USS Bulkeley.

A Havana native, Del Toro immigrated from Cuba to the U.S. with his family as refugees in 1962 and grew up in New York City. He graduated from the U.S. Naval Academy at Annapolis and was the first Hispanic president of the White House Fellows Foundation and Alumni Association. Del Toro was recently appointed to the Naval Academy Alumni Association’s Special Commission on Culture, Diversity and Inclusion. He also holds master’s degrees from the Naval War College and George Washington University and lives in the Mount Vernon area with his wife, Betty.

“My friend Carlos Del Toro will make an excellent U.S. Navy secretary,” U.S. Sen. Mark Warner said in a statement. “There’s no one better qualified or better equipped, and I know he’ll do our country proud.”

State sees historic 66.2% General Fund revenue increase in May

The state’s General Fund revenue rose 66.2% in May 2021 compared with May 2020, Gov. Ralph Northam announced Friday, the largest increase in more than 50 years. He also announced the appointment of the state’s new secretary and deputy secretary of finance.

May is usually a big month for revenue collections due to the state’s income tax collection for individuals and regular collections of withholding and sales taxes from businesses. According to the governor, more than 85% of May’s growth can be attributed to a return to normal tax filing dates. In 2020, the state delayed its May 1 income tax deadline to June 1, while this year, the deadline was May 17, aligning with the IRS due date.

Joe Flores, who has served as deputy secretary of finance in the Northam administration since 2018, was promoted to the top spot after last month’s announcement that former secretary Aubrey Layne was leaving to become chief of staff at Sentara Healthcare beginning in July. Carter Hutchinson, the new deputy secretary, has served as deputy policy director in the Northam administration since 2018.

“Virginia’s economy is roaring back to life thanks to hard work following the science and one of the strongest pandemic responses in the country,” Northam said in a statement. “New COVID-19 cases are at record lows, our vaccination rates are among the nation’s highest, and Virginians  are heading back to work — and these record revenue gains are the result. Our responsible governance is paying off, and we will keep this up as we approach a new budget year and face major decisions about how to best use federal funding from the American Rescue Plan. We have a strong team with the right experience — Joe Flores is a highly qualified, dedicated public servant with a deep understanding of the state budget and a strong background in fiscal policy, and I am confident our economic momentum will continue.”

Virginia’s General Fund revenue for May 2021 increased by 17.8% on a fiscal year-to-date basis, above the annual forecast of 2.7% growth.

Payroll withholding tax collections increased 13.8% during May, while sales and use tax collections (reflecting April 2021 sales) rose 37.5%.

“It has been a tremendous honor to serve the commonwealth and the Northam administration, and I have complete confidence that Virginia’s finances will be in good hands with Joe Flores at the helm,” Layne said in a statement. “May is a significant month for collections for non-withholding, with final payments for tax year 2020 and the first estimated payment for tax year 2021 both due at the beginning of the month. Last year, the filing date was extended to June 1 for both payments, and this year to May 17 for only the final payment, so the effect on the timing of collections is unclear.”

Corporate income tax collections increased 60.1% during May compared to May 2020, a jump from $82.3 million to $47.2 million.

State program would incentivize new workers with up to $1,000

To combat Virginia’s tight labor market, the state plans to invest $3 million in a program to provide new employees of qualifying small businesses with up to $1,000 to support their transition back into the workforce, Gov. Ralph Northam announced Friday.

The Virginia Return to Earn grant program will match up to $500 from eligible small businesses that are paying new hires at least $15 an hour and employ fewer than 100 people. The program will be funded through Virginia’s federal Workforce Innovation and Opportunity Act (WIOA) funding, and additional COVID-19 pandemic recovery funds may be allocated based on demand, the governor’s office said.

“Many Virginians who lost their jobs as a result of the COVID-19 pandemic still face a variety of barriers to returning to work like access to affordable child care, transportation and a living wage,” Northam said in a statement. “These bonuses will serve as an incentive for unemployed workers to get back into the workforce while also helping employers fill vacant jobs. The Virginia Return to Earn grant program is about empowering the true catalysts of our economic comeback — Virginia’s workers and small businesses.”

To qualify for the state’s matching fund of up to $500 per person, businesses must pay that amount directly to a new employee hired after May 31, either as a lump sum or in installments to offset ongoing costs of child care, transportation or other barriers to re-employment. Funds will be reimbursed only to businesses that pay at least $15 per hour for jobs that qualify as W-2 employment, either full time or part time.

Virginia has seen a staffing crisis this year, part of a national trend, as businesses that were shut down or at limited capacity during the pandemic are now fully reopening for businesses — or would if they had enough employees. There are a variety of reasons for the labor shortage, among them state and federal unemployment benefits extended through Sept. 4 and a lack of child care options. Businesses are offering signing and referral bonuses, as well as free meals and end-of-shift cocktails at some restaurants.

Hotels and restaurants have been hit particularly hard, notes Eric Terry, president of the Virginia Restaurant, Lodging & Travel Association, who estimates that about 56,000 hotel jobs were lost in Virginia last year, prompting some workers to move on to other career fields. Another pressure point for some employers is Virginia’s minimum wage raise from $7.25 to $9.50 per hour in May, a first step toward $12 an hour by January 2023, and the fact that Northam has set the grant program eligibility at a $15-per-hour minimum.

In response to the governor’s announcement, Terry said, “We are very disappointed that the wage level was set so far above the state minimum wage of $9.50, which was just increased last month. This will do very little to ease the labor crisis our members are feeling as the tourism and restaurant industry tries to recover.”

CarLotz expanding HQ in Richmond, adding 192 jobs

CarLotz, the nation’s largest consignment-to-retail used vehicle business, plans to expand its headquarters in the city of Richmond, creating 192 jobs, Gov. Ralph Northam announced Friday. To accommodate recent growth, the company will relocate from the city’s Manchester neighborhood to Scott’s Addition.

CarLotz was founded 10 years ago in Richmond and went public in 2020 after partnering with Acamar Partners Acquisition Corp., a special-purpose acquisition company, or SPAC. Virginia competed with Tennessee, Texas and Washington for the project, which will see CarLotz’ operation move into the Handcraft Building at 1501 Roseneath Road.

“CarLotz was born in Virginia, and we couldn’t be more excited to build this next chapter of the company right here in our home state and in the city we love,” said CarLotz c0-founder and CEO Michael Bor in a statement. “We are confident in the workforce and the access to markets that further investing in Virginia will provide for CarLotz, our team members and our guests.”
The city of Richmond received a $700,000 grant through the Commonwealth’s Opportunity Fund, and the Virginia Economic Development Partnership assisted the city with securing the deal. CarLotz is eligible to receive benefits from the Virginia Enterprise Zone Program, and it will receive support for job creation and training through VEDP’s Virginia Talent Accelerator Program.
“CarLotz has experienced tremendous success since its founding in Richmond a decade ago, and we are excited to see this homegrown company deepen its roots in the commonwealth,” Northam said in a statement. “With a fourth Virginia location opening in late June, CarLotz continues to expand its network of hubs in the mid-Atlantic and nationwide. Central Virginia has a deep bench of skilled workers and a strong commitment to developing a robust talent pipeline, making the region an ideal location for fast-growing businesses like CarLotz.”
With $118.6 million in fiscal 2020 revenue, CarLotz has two locations in the Richmond area, one in Chesapeake and a new location in Charlottesville. It has 11 sites nationally, in Virginia, North Carolina, Florida, Illinois, Texas and Washington.

Parsons to purchase BlackHorse Solutions for $203M

Centreville-based Parsons Corp. announced Thursday it has entered into a definitive agreement to acquire Herndon-headquartered BlackHorse Solutions Inc. for $203 million. The transaction is expected to close in July.

BlackHorse, founded in 2018, works in the areas of cyber, digital operations, artificial intelligence, machine learning and full-spectrum operations, and Parsons plans to integrate the company into its federal solutions business segment, adding nearly 200 employees, most of whom have high-level security clearances. BlackHorse is expected to generate revenue of approximately $100 million in 2022.

“Adding BlackHorse increases our scale in the areas of cyber, electronic warfare and information dominance, enhancing Parsons’ position to pursue and win upcoming large joint all-domain contract opportunities, which is a key component of our national defense strategy,” Parsons Chairman and CEO Chuck Harrington said in a statement. “We have partnered closely with BlackHorse in the past, so we know our cultures are well aligned and are excited to welcome their talented team of employees to the Parsons family and leverage their exceptional reputation in the market.”

Parsons, which employs more than 16,000 people in 24 countries, works in defense, intelligence, security and infrastructure engineering, focusing on technology.

“We are thrilled to join the Parsons family,” BlackHorse President and CEO Mike Kushin said in a statement. “We share a common passion for supporting our nation’s most pressing security challenges, and joining forces continues that tradition while accelerating our growth and expanding our customer base. I’m excited for what the future holds.”

Parsons was advised by Baird and Latham & Watkins LLP, and BlackHorse was advised by Raymond James & Associates Inc. and Cooley LLP.

SAIC wins $126M Army task order

Reston-based Fortune 500 government contractor Science Applications International Corp. (SAIC) was awarded a $126 million, single-award task order to research and develop modeling and simulation enhancements for the U.S. Army Combat Capabilities Development Command Ground Vehicle Systems Center in Michigan, the company announced Thursday.

Under the five-year task order from the Department of Defense, SAIC will work on ground combat systems and software integrations and perform lab-based assessments to extend the command’s engineering life cycle.

“We are excited to support GVSC in its important role in providing world-class engineering across the acquisition life cycle. The Army’s ground dominance within the Multi Domain Operations construct is critical, and our team’s unique competencies and domain expertise in areas like digital engineering and modeling and simulation will help them sustain that for years to come,” SAIC Defense & Civilian Sector President Bob Genter said in a statement. “On behalf of the entire team, we look forward to contributing to Army readiness and modernization.”

Last week, SAIC announced it plans to purchase Arlington-based Halfaker and Associates LLC, a technology solutions provider to the federal government’s health, intelligence, defense and security sectors.

Sorry, Pittsburgh! StarKist Co. relocating HQ to Reston in 2022

StarKist Co. is moving its corporate and administrative headquarters from Pittsburgh to Fairfax County, Gov. Ralph Northam announced Thursday. The seafood and chicken company, a subsidiary of Dongwon Industries Co. Ltd., plans to occupy space in a Reston office building, creating 83 jobs by spring 2022.

“Virginia is home to a diverse ecosystem of more than 800 corporate headquarters representing a broad cross section of industries,” Northam said in a statement. “We are thrilled to welcome StarKist Co. to Fairfax County, which consistently attracts top talent and is well connected to key customer markets and major metro areas throughout the United States and beyond. The commonwealth looks forward to a long and fruitful partnership with this popular American household brand.”

Late last month, Pittsburgh Business Times reported that StarKist, which had $900 million in 2020 revenue, was moving to Fairfax in 2022 after it closes down its Pittsburgh headquarters on March 31, 2022. Founded in 1917, StarKist is known most for its tuna products and its mascot, Charlie the Tuna, but it also sells salmon and chicken products. StarKist was purchased by Korean conglomerate Dongwon Industries for $363 million in 2008 from Del Monte.

In 2022, StarKist will move to 1875 Explorer St. in Reston, where it will occupy about 24,000 square feet. Law firm K&L Gates and commercial real estate company West, Lane & Schlager assisted StarKist in its move, and the Virginia Economic Development Partnership worked with the Fairfax County Economic Development Authority to secure the project for Virginia, which was competing with Maryland. VEDP’s Virginia Jobs Investment Program will support job creation at no cost to the company.

“StarKist is proud to make Reston our official global headquarters starting in April 2022,” StarKist President and CEO Andrew Choe said in a statement. “We would like to thank Gov. Northam and the Fairfax County Economic Development Authority for their ongoing support throughout this process. I believe the move to Virginia will provide an outstanding work environment for our employees, as well as an opportunity to expand the StarKist business in the years ahead.”

Victor Hoskins, president and CEO of the Fairfax County Economic Development Authority, said, “I am so pleased to thank StarKist for choosing Fairfax County for its new headquarters. This is a testament to the growing attractiveness of Northern Virginia to a wide variety of industry sectors and companies that know we have the assets and talent base to succeed here.”

New, continued jobless claims maintain decline in Va.

Virginia’s unemployment claims, both initial and continued, fell again last week, continuing the positive trend of the last few weeks, the Virginia Employment Commission reported Thursday.

For the filing week ending June 5, 7,210 people filed new unemployment claims, a decrease of 880 claims since the previous week. Continued claims totaled 50,261 last week, a decrease of 1,967 claims filed the previous week.

“For the sixth consecutive week, initial claims for unemployment insurance in the commonwealth are down from the previous week,” Old Dominion University Dragas Center for Economic Analysis and Policy research associate Dominique Johnson said in a statement. “We see a similar trend in the number of Virginians receiving unemployment benefits, which has declined approximately 16.8% over the last four weeks. With the relaxation of mask mandates and social distancing requirements in Virginia, we expect the recovery to continue to accelerate in the coming months.”

This time a year ago, during the early months of the COVID-19 pandemic, 29,231 people filed new unemployment claims, 75.3% more than last week, while 396,056 people filed continued claims, 87% more than last week. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail trade; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

“Continued vaccinations and the relaxation of social distancing requirements have spurred hiring and lowered initial unemployment claims nationally,” Robert McNab, director of the Dragas Center, said in a statement. “Compared to the first week of January 2021, initial unemployment claims have fallen 59% while continued claims have declined by 42%.

“While regular state continued claims have steadily decreased, continued claims through the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs have not fallen as quickly. With states now moving to end participation in the PUA and PEUC programs as well as the additional $300 a week in unemployment compensation, continued claims are likely to fall swiftly in the coming weeks. We continue to project robust growth through 2021, although we are increasingly concerned about inflationary expectations undermining a sustained recovery.”

Nationwide, the advance figure for seasonally adjusted initial claims last week was 376,000, a decrease of 9,000 from the previous week’s revised level, according to the U.S. Department of Labor, and the lowest number of initial claims since March 14, 2020, the week before the COVID pandemic prompted mass layoffs. There were 1,556,548 initial claims during the same week last year.

Lyon Shipyard plans $24.4M expansion, adding 119 jobs

Norfolk’s Lyon Shipyard plans to expand its operation, investing $24.4 million and creating 119 jobs, Gov. Ralph Northam announced Wednesday.

The 93-year-old ship repair and industrial service provider plans to build a new marine travel lift and a larger waterfront dry dock on the Elizabeth River. Virginia competed for the project with North Carolina, according to the governor’s office. Lyon’s customers include the U.S. Navy, the Army, the Coast Guard, Military Sealift Command and the U.S. Department of Transportation’s Maritime Administration, as well as commercial maritime companies.

“Lyon Shipyard has been an integral part of the thriving maritime economy in Hampton Roads for nearly a century,” Northam said in a statement. “The company’s continued investment and job creation in Norfolk is a powerful testament to the strength of the local workforce and the region as an international shipping hub. We are proud to support this expansion, and look forward to Lyon Shipyard’s future growth in our commonwealth.”
The Virginia Economic Development Partnership worked with the city of Norfolk to secure the project for Virginia and will support Lyon Shipyard’s job creation through VEDP’s Virginia Jobs Investment Program at no cost to the business. The shipyard also will receive a federal Small Shipyard Grant from the U.S. Department of Transportation.
“When we started exploring the expansion of the shipyard, other states reached out to us about a possible relocation,” George Lyon, the shipyard’s president, said in a statement. “Due to the resources here in Virginia and the willingness of the city and the commonwealth to help us with our plans, we came to the realization that Virginia was the place for Lyon Shipyard. We are excited to continue our story here in Norfolk.”

U.Va. names new medical school dean

The University of Virginia has named Dr. Melina R. Kibbe the next dean of its medical school and chief health affairs officer for UVA Health, the university announced in a news release Wednesday.

Kibbe, who starts her new position Sept. 15, is the Colin G. Thomas Jr. Distinguished Professor and chair of the Department of Surgery at the University of North Carolina. She also works in the biomedical engineering department and is editor-in-chief of the JAMA Surgery medical journal.

A member of the National Academy of Medicine, Kibbe has received federally supported awards from the National Institutes of Health, the Department of Defense and the Veterans Administration, and she has served as principal investigator for gene- and cell-based clinical trials studying critical limb ischemia. Kibbe also holds 10 patents or provisional patents and co-founded Illinois-based VesselTek BioMedical LLC, which develops devices to treat vascular disease.

She succeeds Dr. David S. Wilkes, who served in the position for six years. Kibbe holds degrees from the University of Chicago, and she completed her internship, residency and research fellowship at the University of Pittsburgh Medical Center and her vascular surgery fellowship at Northwestern University. She previously served as vice chair of research at Northwestern’s surgery department and as deputy director of the Simpson Querrey Institute for BioNanotechnology.

“Dr. Kibbe’s cutting-edge clinical expertise, her impressive research credentials and her outstanding leadership skills make her the ideal person to lead the School of Medicine,” Dr. Craig Kent, U.Va.’s executive vice president for health affairs, said in a statement.